FX.co ★ Technical Analysis of GBP/USD for January 10, 2022

Technical Market Outlook

The GBP/USD pair has made a new swing high at the level of 1.3597, pulled-back towards the lower channel line and bounced back up. The next target for bulls is located at 1.3604 and might be hit very soon. The immediate technical support is seen at 1.3512 and 1.3516. The strong and positive momentum support the short-term bullish outlook for GBP, however, the market conditions are now extremely overbought on the H4 time frame chart, so a pull-back towards the level of 1.3428 or below is welcome.

Weekly Pivot Points:

WR3 - 1.3817

WR2 - 1.3714

WR1 - 1.3658

Weekly Pivot - 1.3540

WS1 - 1.3488

WS2 - 1.3377

WS3 - 1.3322

Trading Outlook:

Despite the recent breakout above the level of 1.3579, which is the 61% Fibonacci retracement of the last wave down, the Pound market is still in a down trend and might reverse any time soon. The down trend long-term target is located at 1.2668 ( September 2020 lows) as long as the level of 1.3579 is not clearly broken (daily candle close far from this level).